Varied customer base is a downturn defense
Wholesale fuel marketer ‘involved in so many things’
SUN Coast Resources, a wholesale fuels and lubricant marketer and distributor, has worked to cultivate a diverse customer base that allows it to thrive even when one area sees a downturn.
Some of the energy companies it provides fuels and services to in the oil patch curbed demand due to the drop in crude prices. But Sun Coast also provides fuel and services to commercial and industrial clients, school districts and other government entities, as well as other customers.
“We stayed fairly constant because we were able to weather things because of our being involved in so many things,” said its senior managing director, Steve Boyd. “If there is a downturn in one segment, we are fine because we’re not disproportionate in being addicted to any one business segment.”
Annual revenue last year was about $1.8 billion, down slightly from its number the year before. Its No. 7 spot on the list of top private companies is two notches higher than the year before.
Sun Coast sells several hundred million gallons of diesel fuel and gasoline annually, and Boyd said the demand for its fuels has remained relatively stable despite oil prices.
And the Houston-based company has become even more aggressive in terms of prospecting for new customers, products and services, and so far that has paid off, he said.
The company has 1,637 employees, nearly 700 in Houston.
Sun Coast, founded by CEO Kathy Lehne in 1985, when she was 23, has a fleet of 1,000 trucks, which Boyd said were outfitted with new automated technology last year that improved communications with customers, increased productivity and reduced operating costs.